Skip to main content
Normal View

Insurance Industry Regulation

Dáil Éireann Debate, Wednesday - 18 June 2014

Wednesday, 18 June 2014

Questions (41)

Ciara Conway

Question:

41. Deputy Ciara Conway asked the Minister for Finance if his attention has been drawn to reports of citizens who are unable to get a response from the Motor Insurance Bureau of Ireland in respect of ongoing issues with Setanta Insurance; if he has given specific instructions to the MIBI to deal with third party claims as there appears to be confusion on the part of the MIBI in respect of this; and if he will make a statement on the matter. [26299/14]

View answer

Written answers

MIBI is a non-profit-making organisation registered in Ireland.  All insurance companies underwriting motor insurance in this county must, by law, be members of MIBI and contribute to the funding of claims in proportion to their market share. The company was established by the insurance companies following an Agreement between the Government and those companies underwriting motor insurance in Ireland. The principal role of MIBI is to compensate innocent third party victims of accidents caused by uninsured and unidentified vehicles. This is regulated under the terms of an Agreement between the MIBI and the Minister for Transport, Tourism and Sport. 

I have consulted with the Minister for Transport, Tourism and Sport, who has responsibility for motor insurance policy, on this matter.  Neither I, nor the Minister for Transport, Tourism and Sport, are aware of reports of citizens unable to get a response from the Motor Insurance Bureau of Ireland (MIBI) in respect of on-going issues with Setanta Insurance.

I have also consulted with MIBI and they have advised me as follows:

- The MIBI has received hundreds of letters, enquiries and claim notifications since the news of the insolvency of Setanta Insurance on 17 April 2014. All of these have been responded to. 

- The MIBI is responsible for compensating innocent third party victims of road traffic accidents caused by uninsured and unidentified vehicles under its 2009 Agreement with the Government. The MIBI is funded entirely by premiums paid by insured policyholders and has a responsibility to ensure that all its payments are appropriate and fair.

- The situation of Setanta Insurance whereby a company authorised and supervised by a regulator other than the Central Bank of Ireland, yet has conducted all its business solely in Ireland and has gone into liquidation, is believed to be unprecedented.  Given this fact and the potential impact on insurance premiums MIBI is taking legal advice as regards its role and responsibilities.

- The MIBI is continuously reviewing all of the issues involved and is in active communication with the many stakeholders in the situation.  The MIBI will assist in any way it can to bring clarity to the matter.      

-  The MIBI can be contacted on info@mibi.ie or on 01 676 9944.

The arrangements put in place by MIBI for dealing with the Setanta claims is a matter for the MIBI itself under the terms of the Agreement and as such it falls outside my remit to issue instructions to MIBI.  My Department is endeavouring to clarify the position on a number of legal matters relating to policyholders' claims for compensation, including the role of MIBI in this regard. If, for legal reasons, MIBI is not in a position to accept a claim, these third party claims will be eligible to proceed for consideration by the High Court for compensation from the Insurance Compensation Fund (ICF). All ICF payments in a liquidation are subject to the limit of 65% of the amount due or €825,000, whichever is the lesser.

Officials from my Department met with MIBI on 11 June 2014 to discuss the issue of Setanta and they informed us that they expect to have legal certainty in the coming weeks.

Top
Share